America’s manufacturing sector has contracted for the first time since June 2020.
Data provider S&P Global reports that output declined in November, as new orders fell at a faster speed.
It’s US manufacturing PMI has fallen to 49.0, from 50.2 in October, a level that shows activity fell.
The downturn was the sharpest since May 2020, and driven by declines in output and new orders, reports S&P Global, adding that:
Demand conditions weakened in domestic and external markets, as new export orders fell further. Employment growth slowed as pressure on capacity dwindled and backlogs of work contracted strongly.
On a more positive note, supply chains improved for the first time since October 2019, with price pressures softening as a result of reduced demand for inputs from firms. Input costs rose at the slowest rate for two years.
⚠️ BREAKING: US ISM MANUFACTURING PMI ACTUAL 49.0 (FORECAST 49.7, PREVIOUS 50.2) $MACRO
— Breaking Market News ⚡️ (@financialjuice) December 1, 2022
Over on Wall Street, the S&P 500 index has opened 0.3% higher.
The share index is up 11 points at 4,091.
U.S. stock index futures ticked higher Thursday after the Federal Reserve’s preferred inflation gauge showed inflation cooling in October, while reports suggested China is taking steps to relax its Covid restrictions to allow its economy to recover: https://t.co/ljVUSCucLC pic.twitter.com/EdXPV1xYZw
— MarketWatch (@MarketWatch) December 1, 2022
